Why Actions Speak Louder Than Words in Web3

In Web3, trust means something completely different.

Trust exists in almost every transaction, both online and offline.

Trust is a foundational pillar for communities and is built over time through accumulated experiences and interactions that define our identities and our reputations. Upholding trust requires constant nurturing by repeatedly demonstrating, rather than stating, one’s values and qualities.

Unfortunately, many of the values that uphold trust have been lost in the Web2 environment, both online and off. But for those of us in the blockchain and crypto space, trust is implied through trustlessness.

Trustlessness means you do not need to place your trust in strangers, institutions or third parties in order for a network or marketplace to function. Instead, trustless systems rely on encrypted code and smart contracts to achieve consensus. Participants don’t have to know or trust anything but the system itself.

How Identity Changes in Web3

Our identity and reputation are made up of both culturally assigned and perceived attributes. These unique identifiers and credentials authenticate our online identity, while our actions and our network contributes to how we are perceived by communities.

In Web2, online identity can be rented or bought. Think of how many organizations want their employees to tailor their personal profiles to match the company’s. In this case, the institution controls the user's identity and it cannot?be transferred. Or, think of purchased followers, ads, and props on social media that make someone’s identity appear more grandiose.?

Web3 Demands More Authenticity

When moving onto Web3, the identity you’ve built and the reputation you’ve earned on Web2 is largely lost. While players with pockets deep enough to sway their reputation and identify in their favor will still be on Web3 , Web3 demands more authenticity overall because it relies on the trustless principles of blockchain that nurture more authentic and meaningful connections.?

Reputation is a multi-way street in Web3. Members accrue reputation from interacting with one another. Communities build reputation through the overall quality of member reputations, as well as strong community management. What’s important is that reputation can’t be bought but earned, based on how much value in impact and activity you’re creating for the community.

Web3 Increases Sovereignty??

Your identity becomes sovereign because it is a combination of on-chain and off-chain credentials that lets you control how you present yourself and to whom. While portable, it can become fragmented across different Web3 communities, like discord channels associated with independent projects that are specific to “niche” communities.?

When you move into a new community on Web3, you have to re-establish your reputation. Currently, reputation in Web3 is highly contextual and community-specific.

We have seen some projects and identities transcend these barriers such as, Prop.House.

Reputable communities like Prop House and (Nouns DAO) will be admired for their consistency in purpose, clarity in communications, competency in capabilities and resources, and for their caring and inclusive culture.

Web3 Allows More Privacy

In Web3, you can also work with pseudonyms, so you can conduct transactions without having to identify yourself.?

Pseudonymity allows users to be identified to some degree but within parameters that they can control. Using Pseudonymity in Web3 does not imply being inauthentic. On the contrary, Pseudonymous users can still establish meaningful relationships, build reputations, and cultivate trust all without identifying their name or actual identity.?

In fact, the $BTC blockchain was built by a pseudonymous figure. Whether Satoshi Nakamoto is a pseudonym for one individual actor or a collective of people, they have made their point clear:

Your identity doesn’t have to matter if you let your work and creations speak for themselves.

Conclusion?

There is still a long way to go to enable fully decentralized technology. Your Web2 reputation still plays a role in accessing opportunities on Web3. Until the gaps at the infrastructural layer of decentralization are addressed, creator and project reputations will be reinforced by member integrity and the symbiotic relationships they form.?

Those who truly understand the value of this technology will lead by example. The best projects will bring value to the communities they lead, actively engage their community, recognize, and reward their members for the value they contribute.?

Web3 is the promise of universal basic equity, providing anyone with a level playing field to build up their reputation and strengthen their credentials, purely on the merits of their contributions. Looking forward to a future where crypto wallets will store our credentials and possessions, they will hold the keys to our sovereign, yet pseudonymous identity, and serve as our reputation to unlock access to experiences and wealth in the Web3 economy.